Family wealth can be complicated and expectations can vary. Putting in place effective Family Governance creates a clear direction for each family member to manage their own expectations in relation to family wealth.
Implementing a Family Governance structure is a good idea ahead of setting up a trust or company structure to hold family wealth. This provides the opportunity to give consideration to wider family governance issues and intentions for the future.
Forming a Family Charter can often be an excellent way of communicating decision-making processes, responsibilities, ownership entitlements and any involvement in family businesses. The Charter is not a legal document but it can be used to communicate across the family structure and helps when transferring wealth through generations. It can also be a useful tool when resolving conflicts.
Engaging with families and planning the governance framework and principles around any wealth structuring is central to our planning at Louvre. We believe this should be continually reviewed, taking into account external factors and changing family circumstances.